A nominee is a person who is authorized to receive the securities held in a Demat account in the event of the account holder’s death. You must nominate a person for your Demat account to ensure that your investments are passed on to your chosen nominee without legal hassles. This article will explain how to nominate a person for your Demat account.
Understand the Nomination Process
Before nominating a person for your Demat account, it is essential to understand the nomination process. The Depositories Act, of 1996, and the SEBI regulations govern the nomination process. You can nominate up to three persons for your Demat account. The nominee can be a family member or a friend. You must provide the nominee’s name, address, and relationship with you. You can also specify the percentage of securities that each nominee is entitled to receive in case of your death. It is important to note that the nominee has the right to receive the securities held in the Demat account only as a trustee for the legal heirs of the deceased account holder and knows how to open a trading account.
Obtain the Nomination Form
The next step is to obtain the nomination form from your Depository Participant (DP). The nomination form is a simple document that requires your details, your Demat account details, and the nominee’s details. You will need to sign the nomination form in the presence of two witnesses who are unrelated to you or the nominee.
Fill in the Nomination Form
Once you have obtained the nomination form, fill in the details carefully. Provide your details such as name, address, PAN number, and bank details. Provide your Demat account details, such as the DP name, DP ID, and the Demat account number. Provide the nominee’s details, such as name, address, and relationship with you. Finally, specify the percentage of securities that each nominee is entitled to receive in case of your death. You know these things only when you know how to open a trading account.
Submit the Nomination Form
After filling in the nomination form, please submit it to your DP along with a self-attested copy of your PAN card. You can submit the nomination form in person or through a courier. Once the DP receives the nomination form, they will verify the details and update your Demat account with the nominee details.
Verify the Nomination Details
After submitting the nomination form, verify the nominee details in your Demat account statement. Ensure that the nominee details are accurate and that the percentage of securities specified for each nominee is correct. If there are any errors, contact your DP to rectify their errors.
Nominating a person for your Demat account is a simple process that can be completed by following these steps. Understanding the nomination process, obtaining the nomination form, filling in the nomination form, submitting the nomination form to your DP, and verifying the nominee details are the steps you need to follow to nominate a person for your Demat account. It is essential to nominate a person for your Demat account to ensure that your investments are passed on to your chosen nominee without any legal hassles in case of your death. In addition, you should know the Trading account.